JAKARTA- Indonesia’s central bank will continue to guide the foreign exchange market to prevent extreme currency movements that could lower confidence, monetary department head Edi Susianto said on Tuesday.
The rupiah fell by as much as 0.5 percent against the dollar on Tuesday to 16,400. Edi said that was triggered by a statement from The European Central Bank that there was uncertainty over the inflation level in Europe.
Indonesia’s economic growth in the first quarter beat expectations, buoyed by high public spending for the country’s elections, but maintaining the strong pace will be challenging due to global developments and tight local monetary conditions.
Southeast Asia’s largest economy grew by 5.11 percent on a yearly basis in the January-March period, the highest growth rate in three quarters. Growth exceeded the 5 percent rate expected by economists polled by Reuters and the 5.04 percent achieved in the fourth quarter.
In the first three months of 2024, campaign expenditure for the Feb. 14 election and higher household spending during the Muslim holy month of Ramadan, which started in March, bolstered economic activity.
